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Restructuring and Energy Efficiency, Conservation & Demand Response

Restructuring and Energy Efficiency, Conservation & Demand Response. Susan Gray August 26, 2008 PPRAC Meeting. What else has been happening recently at the PSC?. Doug Nazarian replaced Steven Larsen as Chairman on August 16. Mr. Nazarian served as PSC General Counsel (since June 2007)

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Restructuring and Energy Efficiency, Conservation & Demand Response

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  1. Restructuring and Energy Efficiency, Conservation & Demand Response Susan Gray August 26, 2008 PPRAC Meeting

  2. What else has been happening recently at the PSC? • Doug Nazarian replaced Steven Larsen as Chairman on August 16. Mr. Nazarian served as PSC General Counsel (since June 2007) • Restructuring/SB400 – best price/lowest cost/least price volatility/maintain reliability • Case 9117 (IRPs), Case 9149 (RFPs); PC-13 • Energy Efficiency, Conservation & DSM • Case 9111 (TAG); PC-12 (EmPwer MD), PC-15 (Utility Incentives for EE&C and DR)

  3. Restructuring-Related Cases Major Elements (PSC has authority to order): • Utilities to build new power plants • Greater electricity supply reliability • Long-term contracts for power supply (SOS) • Could result in construction of new power plants, greater rate stability • Energy efficiency/conservation as part of supply portfolios • Integrated Resource Plans (IRPs) to be filed by the utilities in October 2008

  4. Energy Efficiency & Conservation (EE&C) and Demand Response Major Considerations: • Reliability (PJM projects problems as early as 2011/2012) • Increases reliability by reducing load on grid • Pricing/charges • How to pay for these programs • Electricity consumption • EmPower MD goal: 15% reduced consumption by 2015 • Wholesale/retail prices • Decreased demand means downward pressure on price • Environmental policies • RGGI/GHG – reductions in emissions; increased price • EE&C program proposals to be filed by the utilities on September 1, 2008.

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